Title: The effect of capacity building and service quality on SME's engagement to improve economic creativity in Subang Regency, Indonesia

Authors: Hendry Hartono; Lasmy Lasmy; Ruby Dary Haniva Abduh

Addresses: Management Department, BINUS Business School Undergraduate Program, Universitas Bina Nusantara, Indonesia ' Management Department, BINUS Business School Undergraduate Program, Universitas Bina Nusantara, Indonesia ' Management Department, BINUS Business School Undergraduate Program, Universitas Bina Nusantara, Indonesia

Abstract: SME plays an important role in the structure of the Indonesian economy, based on Bank Indonesia's 2016 report, the SME sector dominates 99.9% of business units in Indonesia and absorb almost 97% of the workforce. The government's concern is to continue to develop and empower SMEs to have good quality and able to compete in various regions. The purpose of this research is to know the influence of capacity building and service quality towards SMEs' engagement in improving creative economy in Indonesia. Data collection techniques were through questionnaires given to SMEs and then data were processed through software SPSS 20 using regression. The results show that capacity building for SMEs' engagement does not have a significant influence, while for the quality of service to SMEs' engagement has influence. Both have a significant influence on SMEs' engagement in improving the creative economy in Subang Regency, while service quality has a greater influence than capacity building.

Keywords: service quality; capacity building; SMEs engagement.

DOI: 10.1504/IJBG.2021.115303

International Journal of Business and Globalisation, 2021 Vol.28 No.1/2, pp.193 - 205

Received: 02 Mar 2019
Accepted: 17 May 2019
Published online: 27 May 2021 *

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